Line organisation:

Line organisation is the oldest type of organisation. It is also

known as scalar or military organisation.
In this type of
organisation, there is a vertical line of authority running from the
top to bottom of organisation.
The man at the top has the highest authority and it is reduced to
each successive level down the hierarchy. Every person is in
direct chain of command. He gets orders from the man
immediately above him and is directly accountable to only one
superior.
Advantages:
Line organisation offer the following benefits:
1. It is very simple to establish and can be easily understood by
employees.
2. The authority and responsibility of each position is clearly
defined. Each individuals knows to whom
he is responsible.
3. It facilitates prompt decisions and speedy action is possible.
4. There is unity of command and each executive has full control
over his subordinates.
5. It ensures better discipline.
6. Each individual can be held accountable for results and he
cannot shift his responsibility to others.
7. It is very economical.
Limitations:
Line organisation suffers from the following draw backs:
1. There is lack of specialisation
2. Key executives are over burdened with administrative work.
3. It may result in autocratic control.

4. Subordinates may lose initiative and independent thinking.

5. Line organisation may lack stability and continuity.
6. Thus line organisation is suitable for small concerns employing
few persons and carrying on routine work